Introduction
In Lagos, Nigeria’s commercial powerhouse, property sales occur daily — from residential apartments in Lekki to commercial complexes in Ikeja. But what happens when a property occupied by tenants is sold to a new owner? Must the tenants vacate immediately? Are their tenancy rights extinguished by the sale?
These are recurring questions in Lagos property practice. The answers lie in a clear understanding of tenant rights under the Lagos State Tenancy Law (2011), common-law principles, and Nigerian judicial precedents.
A tenant’s right to quiet enjoyment, possession, and notice protection does not disappear simply because the landlord sells the property. However, the manner of sale, the type of tenancy, and the contractual terms determine how these rights play out.
This article explains, in detail, the legal position, procedures, and remedies applicable when a property under tenancy is sold in Lagos.
Legal Framework
1. Lagos State Tenancy Law, 2011
This statute governs tenancy relationships across Lagos State (except government and charitable premises). It provides that a tenant is entitled to:
- Peaceful possession;
- Adequate notice before eviction;
- Protection against unlawful interference.
2. Recovery of Premises Law, Cap 118, Laws of Lagos State 2015
This law outlines the lawful procedure for recovering possession and serves as the foundation for eviction actions — including those following a property sale.
3. Common Law and Judicial Decisions
Nigerian courts have consistently upheld the rule that “a purchaser takes subject to existing tenancies.” That means the buyer of a property cannot simply eject a tenant who is in lawful possession.
Effect of Sale on an Existing Tenancy
When a landlord sells a property occupied by a tenant, the sale does not automatically terminate the tenancy. The purchaser becomes a successor-in-title and steps into the shoes of the previous landlord.
In legal terms:
“The buyer takes the property subject to the tenant’s rights of occupation.”
Thus:
- The tenant retains possession for the unexpired term;
- The purchaser assumes all landlord obligations (maintenance, rent collection, etc.);
- The purchaser can only evict through proper notice and court procedure.
Types of Tenancy and Their Effect on Sale
1. Fixed-Term Tenancy
If the tenant holds under a written agreement for a fixed period (e.g., one year), the sale cannot terminate it before expiry. The new owner must honour the existing agreement.
2. Periodic Tenancy (Monthly, Quarterly, Yearly)
The purchaser inherits the tenancy and must issue proper statutory notice (under Section 13 of the Lagos Tenancy Law) if he wishes to terminate.
3. Tenancy at Will
This form of tenancy is more fragile. Either party can terminate with reasonable notice. The new owner may lawfully issue notice immediately after the sale.
4. Statutory Tenant
Where the contractual tenancy has expired but the tenant remains in possession paying rent, he is protected by statute and can only be ejected through the court.
Rights of a Tenant When the Property Is Sold
1. Right to Peaceful Possession
The tenant is entitled to remain undisturbed until the tenancy expires or is lawfully terminated.
2. Right to Adequate Notice
Section 13 of the Lagos Tenancy Law prescribes:
| Tenancy Type | Notice Period |
|---|---|
| Yearly Tenancy | 6 months |
| Half-Yearly | 3 months |
| Quarterly | 3 months |
| Monthly | 1 month |
| Weekly | 1 week |
3. Right to Recognition by the New Landlord
The purchaser must notify the tenant formally of ownership change, providing new payment details and contact information.
4. Right to Recover Caution Deposit
The outgoing landlord must transfer any security deposit to the buyer or refund it to the tenant upon termination.
5. Right to Renewal Negotiation
The tenant may negotiate renewal directly with the new landlord before expiration.
6. Right to Challenge Illegal Eviction
If the new owner locks out the tenant or demolishes the premises without a court order, the tenant may sue for trespass, damages, and reinstatement.
Obligations of the Tenant After Sale
- Continue paying rent (to the new landlord once notified).
- Maintain the property responsibly.
- Respect new payment instructions.
- Vacate only after proper notice or court order.
Failure to comply exposes the tenant to legal action for arrears or possession recovery.
Duties of the Purchaser (New Landlord)
- Serve Notice of Ownership Change immediately after purchase.
- Collect rent only after due notification to avoid double payment disputes.
- Respect existing tenancy terms until expiration.
- Follow lawful eviction procedures for termination.
- Handle tenants courteously to avoid reputational and legal damage.
Procedure for Sale of Tenanted Property in Lagos
Step 1 – Conduct Due Diligence
Purchasers must verify existing tenancy documents before completion. This includes:
- Reviewing tenancy agreements;
- Confirming rent payment status;
- Inspecting possession conditions.
Step 2 – Vendor Disclosure
The seller is legally obliged to disclose all subsisting tenancies to the buyer. Concealment amounts to misrepresentation.
Step 3 – Execution of Deed of Assignment
The Deed should include a clause acknowledging that the sale is “subject to existing tenancies.”
Step 4 – Notice to Tenants
After completion, the new owner must issue a Notice of Change of Ownership (often through a lawyer).
Step 5 – Rent Collection or Termination
The purchaser then collects rent directly or lawfully terminates by giving statutory notice.
Case Study 1: Tenant Eviction After Sale (Ikeja)
A landlord sold a tenanted duplex to a buyer who immediately demanded vacant possession without notice. The tenant sued for unlawful eviction.
Judgment: The court held that a purchaser who acquires a property under existing tenancy must respect the subsisting term. The buyer was ordered to pay ₦2 million in damages.
Lesson: Sale does not extinguish tenancy; due process remains mandatory.
Case Study 2: Sale During Periodic Tenancy (Lekki)
A tenant paying monthly rent was informed that the property had been sold. The new owner issued a one-month notice to quit. The court upheld the notice as valid under Section 13(1) because the tenancy was monthly.
Lesson: The type of tenancy determines the permissible notice period.
Statutory Remedies for Tenants
If unlawfully evicted, tenants may:
- File an action for trespass and unlawful eviction;
- Seek reinstatement and damages;
- Petition the Lagos Tenancy Enforcement Unit or Citizens Mediation Centre;
- Demand refund of security deposits and prepaid rent.
Statutory Remedies for Purchasers
Purchasers may:
- Apply for recovery of possession after notice expiration;
- Claim mesne profits if tenants refuse to vacate after termination;
- Seek court order for eviction and arrears recovery.
Role of Lawyers in Property Sale and Tenancy Transition
Lawyers ensure:
- Proper due diligence and disclosure;
- Drafting of compliant notices;
- Smooth rent transfer;
- Legal compliance in eviction;
- Representation during disputes.
At Chaman Law Firm, we routinely manage sale transactions involving tenants, ensuring compliance and peaceful possession transfer.
Common Pitfalls in Tenanted Property Sales
- Selling property without disclosing tenants.
- Collecting double rent during transition.
- Failing to transfer security deposits.
- Issuing defective notices.
- Resorting to self-help eviction.
Such missteps can invalidate sales or lead to costly litigation.
Frequently Asked Questions (FAQs)
1. Can a new owner evict existing tenants immediately?
No. The new owner must honour existing tenancy terms and issue proper notice before eviction.
2. Who should tenants pay rent to after sale?
Once notified, rent is payable to the new owner or his appointed agent/lawyer.
3. Can a tenant refuse to vacate after sale?
A tenant may remain until tenancy expires or lawful notice and court order are issued.
4. Is the purchaser bound by the old tenancy agreement?
Yes. The purchaser inherits all landlord obligations until new terms are agreed.
5. Can the seller collect rent after sale?
No. Rent belongs to whoever holds legal title at the time payment is due.
6. Can prepaid rent be refunded if the tenant is asked to leave early?
Yes. The new landlord must refund the unearned portion unless the tenant breaches terms.
Preventive Tips for Landlords and Buyers
- Always disclose and document existing tenancies during sale.
- Insert “subject to existing tenancy” clauses in conveyance documents.
- Engage a property lawyer before, during, and after completion.
- Avoid informal oral agreements with tenants post-sale.
- Issue all notices through legal counsel to preserve validity.
Recent Judicial Trends
Nigerian courts increasingly protect tenants from arbitrary eviction following property sale.
- Olu-Ake v. Ogunleye (2019) – Court reaffirmed that purchaser cannot evict without statutory notice.
- Adegbite v. Lawal (2020) – Held that existing tenancy continues until terminated by due process.
- Okafor v. Babatunde (2021) – Upheld tenant’s right to quiet enjoyment during property transfer.
Conclusion
In Lagos, the sale of a tenanted property does not automatically terminate existing tenancy rights. The purchaser becomes the new landlord and must respect the tenant’s possession, issue statutory notice for termination, and follow due process for eviction.
For tenants, understanding these rights ensures protection against arbitrary displacement. For landlords and investors, proper legal handling of tenancy transitions preserves reputation and prevents avoidable litigation.
Call to Action
At Chaman Law Firm, we are experts in Property and Real Estate Law, advising landlords, investors, and tenants across Lagos and Ogun States. We handle due diligence, tenancy transfers, property sales, and dispute resolution with precision and professionalism.
Contact Us
Chaman Law Firm
115, Obafemi Awolowo Way,Allen Junction, Beside Lagos Airport Hotel, Ikeja, Lagos
�� 0806 555 3671, 08096888818,